EHRC inquiry finds women in leading finance companies receive around 80 per cent less than men in bonuses

EHRC – 07/09/2009

The Equality and Human Rights Commission has now completed its inquiry into sex discrimination in the financial services sector in Great Britain. The main terms of reference were:

1. To inquire into the gender pay gap and pay trends across the financial services sector
2. To inquire into the extent and nature of sex discrimination in relation to recruitment, terms and conditions, promotion, career paths, retention and workplace culture across the financial services sector
3. To examine measures used by employers and other organisations to address sex discrimination and inequalities in pay and status, and to assess the effectiveness of such measures

The two main findings of the enquiry are that:

• Women employees earned an average of £2,875 in annual performance related pay compared to an average of £14,554 for men – a gender pay gap of 80 per cent.
• A gap in annual basic pay between women and men of 39 per cent. However, this gender pay gap rises to 47 per cent for annual total earnings when performance related pay, bonuses and overtime are taken into account.

The inquiry makes seven key recommendations:

1. Appoint a board member to set the tone, mainstream the issues and drive change.
2. Implement a staff training and communications programme on gender equality and diversity and on equal pay to influence the understanding and behaviours of decision-makers within the organisation.
3. Incorporate equality and diversity into organisational and individual objectives.
4. Develop and carry out non-discriminatory job descriptions and analytical job evaluations that are flexible enough to meet the business’ needs but that set a clear framework for recruitment, promotion, pay and reward structure.
5. Undertake annual equal pay audits and publish the data.
6. Make sure maternity, paternity and parental support schemes are in place and are effective.
7. Monitor the implementation and effect of policy on gender equality.

See also the EHRC Press Release of 7th September 2009, notes “City’s gender pay gap revealed” on ePolitix.com, this article on BBC News and comment in The Guardian.

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